Economy & Business MCQs - 2026-06-12

Issuing sovereign bonds (government securities) is a common way for governments to borrow funds from the market to finance large-scale projects, including infrastructure.

The National Solar Mission (Jawaharlal Nehru National Solar Mission) is a flagship program of the Government of India to promote solar energy.

Infrastructure investment creates jobs, stimulates demand for materials and services, and improves logistics and connectivity, thereby boosting aggregate demand and productivity, leading to economic growth.

Cash Reserve Ratio (CRR) is a quantitative tool that directly impacts the liquidity in the banking system. Moral Suasion, Direct Action, and Margin Requirements are qualitative tools.

Maintaining a 'status quo' means that the existing policy rates, such as the Repo Rate, Reverse Repo Rate, and others, will remain unchanged.

The Governor of the Reserve Bank of India serves as the ex-officio Chairperson of the Monetary Policy Committee.

The Manufacturing PMI typically considers new orders, production, employment, supplier deliveries, and inventories. Government fiscal deficit is not a direct component.

A PMI reading above 50 indicates an expansion in the manufacturing sector compared to the previous month, while a reading below 50 indicates contraction.

PMI stands for Purchasing Managers' Index, which is a key economic indicator derived from monthly surveys of private sector companies.